Recently, Congressman Adam Smith (D-WA) introduced a bill aimed at slowing “the consolidation of single-family home ownership among the investor class.”<\/p>\n
The Saving Homes from Acquisition by Private Equity Act, or the SHAPE Act, would institute a federal tax worth 100 percent of the value of the single-family home being bought, when that home is purchased by a “large investor.” The language of the bill<\/a> defines a large investor as any person whose assets have an aggregate value of over $20 million.<\/p>\n It would not apply to homes being purchased to be the “principal residence,” or to certain tax-exempt organizations.<\/p>\n The revenue generated from the tax would be transferred to the Housing Trust Fund to be used as grants given for affordable housing projects in communities.<\/p>\n “Folks in our communities should not have to compete with large institutional investors and private equity firms when they go to buy a home, and renters should not be subjected to the harmful practices by these investor class landlords that want to wring the value out of each house,” said Smith. “My bill will deter this problematic trend that is damaging the housing market, consumers, and our communities.”<\/p>\n